Bond traders welcome the Treasury's confirmation that it will stand by all UK debt in the event of Scottish independence but credit rating agencies could be concerned about the UK's bigger burden.

OECD SAYS GROWTH CONTINUES TO 'FIRM' IN UK

Britain is leading a small band of advanced economies where growth is "firming" and the recovery gaining traction, according to the Organisation for Economic Co-operation and Development (OECD).

The Guardian

JAPAN'S SUNTORY BUYS MAKER OF JIM BEAM BOURBON

Illinois-based Beam Inc, the drinks group behind Jim Beam bourbon as well as Scotch whiskies Teacher's and Laphroaig, has been sold to Japanese whisky distiller Suntory as part of a $16 billion deal.

HOMESERVE FACES 35 MLN STG REGULATOR FINE

Home emergencies and repairs group HomeServe has received a draft "warning notice" from the Financial Conduct Authority (FCA) and is set to be fined 34.5 million pounds for mis-selling and poor complaints handling.

The Times

PREDATOR RALLIES INVESTORS IN $62 BLN BID FOR TIME WARNER

The American cable television operator Charter Communications stunned Wall Street and the media world on Monday night by mounting an audacious $62.3billion bid, including debt, for its much larger rival Time Warner Cable .

GOOGLE ACQUIRES NEST FOR $3.2 BILLION

Google Inc continued its push into becoming a maker of consumer electronics by acquiring Nest, a company that sells "smart" thermostats and smoke alarms, in a deal worth $3.2 billion.

The Independent

SPORTS DIRECT BUYS 4.6 PERCENT STAKE IN DEBENHAMS

Mike Ashley's Sports Direct has quietly snapped up a 45 million pound stake in struggling department store Debenhams and Ashley has told the retailer's board that he wants to work closely with them.

U.S. cable company Charter Communications Inc on Monday went public with a proposal to buy Time Warner Cable Inc for $61.3 billion, including debt, only for its larger rival to reject its advances as "grossly inadequate."

Google Inc on Monday announced plans to acquire Nest Labs Inc, a maker of smart thermostats and smoke alarms, for $3.2 billion, making a bold bet on the emerging "internet of things".

Suntory Holdings Ltd said on Monday it would buy U.S. spirits company Beam Inc for $16 billion, including debt, in a deal that underscores the Japanese company's acquisitive global ambitions and Asia's growing thirst for premium spirits.

Three former traders at Dutch lender Rabobank were criminally charged by the U.S. Department of Justice on Monday with manipulating the Yen Libor benchmark interest rate and other key benchmark interest rates.

U.S. drugs wholesaler group McKesson Corp said on Monday it had failed to win enough support for a $8.4 billion offer to buy German distributor Celesio, after a battle with Elliott Associates, the activist hedge fund, over the deal.

Hedge fund Elliott Management Corp urged network equipment maker Juniper Networks Inc to start paying dividends and buy back shares worth $3.5 billion, making it the latest technology company to attract criticism for building up a large cash pile.

NYT

* Ford Motor, the second-largest American automaker after General Motors, took the wraps off a radically redesigned pickup truck at the annual Detroit auto show. Ford will replace its F-150 truck's traditional steel body panels with aluminum parts, which saves weight and improves fuel economy.

* Japan's Suntory announced it would buy Beam Inc , the maker of Jim Beam and Maker's Mark, for $13.6 billion, in one of the biggest takeovers in the liquor business in years which will transform it into the third-largest distiller globally.

* Apple Inc is campaigning aggressively against a court-appointed inspector, appointed to make sure that the company complied with antitrust laws after it was found last summer to have conspired with five publishers to fix prices for e-books, saying he is intruding on operations.

* People signing up for health insurance through the Affordable Care Act's federal and state marketplaces tend to be older and potentially less healthy, officials said on Monday, a demographic trend that could threaten the law's economic foundations and cause premiums to rise in the future.

* House and Senate negotiators reached an agreement on a trillion-dollar spending plan that will finance the government through September, reversing some cuts to military veterans' pensions that were included in a broader budget agreement last month and defeating efforts to rein in President Obama's health care law.

* FBI investigators do not believe Internal Revenue Service officials committed crimes in the unusually heavy scrutiny of conservative groups that applied for tax-exempt status, a law enforcement official said on Monday.

* A special meeting in which the Toronto city council voted unanimously to ask for C$114 million ($105 million) in ice storm funding from the provincial and federal governments descended into a shouting match, with councillors bickering over who was in charge at city hall after the storm. Councillor Karen Stintz, who intends to run against Toronto Mayor Rob Ford this year, took aim at him for not creating a clear chain of leadership after the storm.

* Health Minister Deb Matthews announced that five hospitals in Southern Ontario will permanently close their doors and be replaced with a new acute-care center as part of a massive overhaul of the troubled Niagara Health System.

Reports in the business section:

* Chrysler Group LLC began discussions with the federal and Ontario governments to seek financial assistance for an investment of more than $1 billion to retool a plant in Windsor for a new generation of minivans.

NATIONAL POST

* Round doorknobs are joining incandescent lightbulbs as outdated technology that Canadian governments are seeking to eradicate - in one case for their carbon footprint, in the other for the obstacle they pose to the disabled.

FINANCIAL POST

* Wind Mobile is withdrawing from bidding in Canada's spectrum auction after failing to secure financial backing to participate from its owner VimpelCom Ltd.

* Canada's two national newspapers, The Globe and Mail and Postmedia Network Canada Corp's National Post, told staff about job cuts on Monday. Postmedia also said it would shut down operations at a Calgary call center this spring and outsource the work of selling classified ads for its newspaper chain to U.S.-based Media Sales Plus Inc.

China

CHINA SECURITIES JOURNAL

- The China Insurance Regulatory Commission said it was seeking opinions on insurance fund management and was considering raising the investment ratio for insurance companies in capital markets.

- Shanghai's vice mayor said that the Shanghai free-trade zone will allow exchange of the yuan as part of a bold push to reform the world's second largest economy.

CHINA DAILY

- Shanghai Zhenhua Heavy Industries Co Ltd said it has made an offer for JJ Sietas Schiffswerft, a Hamburg-based shipyard, as part of its drive to diversify and expand its maritime engineering business.

- China Investment Corp, the country's $575 billion sovereign wealth fund, favours European infrastructure and real estate because developed markets will drive the next phase of the global economic recovery, CIC Chairman Ding Xuedong said, adding that the United States will also remain a focus for the Beijing-based fund.

SHANGHAI DAILY

- Shanghai residents spent an average of 31,018 yuan last year through Alipay, a third-party payment service founded by China's largest e-commence company Alibaba . Their expenditure accounted for 9.3 percent of the total spending in the country last year.

PEOPLE'S DAILY

- Chinese citizens should focus on progress while authorities should work on solutions for problems, said a commentary in the paper that acts as the Party's mouthpiece.

Bond traders welcome the Treasury's confirmation that it will stand by all UK debt in the event of Scottish independence but credit rating agencies could be concerned about the UK's bigger burden.

OECD SAYS GROWTH CONTINUES TO 'FIRM' IN UK

Britain is leading a small band of advanced economies where growth is "firming" and the recovery gaining traction, according to the Organisation for Economic Co-operation and Development (OECD).

The Guardian

JAPAN'S SUNTORY BUYS MAKER OF JIM BEAM BOURBON

Illinois-based Beam Inc, the drinks group behind Jim Beam bourbon as well as Scotch whiskies Teacher's and Laphroaig, has been sold to Japanese whisky distiller Suntory as part of a $16 billion deal.

HOMESERVE FACES 35 MLN STG REGULATOR FINE

Home emergencies and repairs group HomeServe has received a draft "warning notice" from the Financial Conduct Authority (FCA) and is set to be fined 34.5 million pounds for mis-selling and poor complaints handling.

The Times

PREDATOR RALLIES INVESTORS IN $62 BLN BID FOR TIME WARNER

The American cable television operator Charter Communications stunned Wall Street and the media world on Monday night by mounting an audacious $62.3billion bid, including debt, for its much larger rival Time Warner Cable .

GOOGLE ACQUIRES NEST FOR $3.2 BILLION

Google Inc continued its push into becoming a maker of consumer electronics by acquiring Nest, a company that sells "smart" thermostats and smoke alarms, in a deal worth $3.2 billion.

The Independent

SPORTS DIRECT BUYS 4.6 PERCENT STAKE IN DEBENHAMS

Mike Ashley's Sports Direct has quietly snapped up a 45 million pound stake in struggling department store Debenhams and Ashley has told the retailer's board that he wants to work closely with them.

Retail sales for December will be reported at 08:30--Current consensus is 0.0% for the month

Business inventories for November will be reported at 10:00--Current consensus is 0.3% for the month

ANALYST RESEARCH

Upgrades

Actuant (ATU) upgraded to Buy from Hold at JefferiesAstraZeneca (AZN) upgraded to Outperform from Market Perform at LeerinkBarnes Group (B) upgraded to Buy from Hold at JefferiesBrocade (BRCD) upgraded to Overweight from Neutral at JPMorganCameco (CCJ) upgraded to Buy from Neutral at BofA/MerrillCliffs Natural (CLF) upgraded to Buy from Hold at Deutsche BankDanaher (DHR) upgraded to Buy from Neutral at BofA/MerrillFlowserve (FLS) upgraded to Buy from Hold at JefferiesGorman-Rupp (GRC) upgraded to Hold from Underperform at JefferiesIntel (INTC) upgraded to Overweight from Neutral at JPMorganJabil Circuit (JBL) upgraded to Conviction Buy from Neutral at GoldmanJuniper (JNPR) upgraded to Outperform from Perform at OppenheimerKaman (KAMN) upgraded to Buy from Hold at JefferiesLogitech (LOGI) upgraded to Buy from Neutral at GoldmanLuxottica (LUX) upgraded to Neutral from Reduce at NomuraMPLX (MPLX) upgraded to Overweight from Equal Weight at BarclaysMSC Industrial (MSM) upgraded to Buy from Hold at JefferiesMagellan Midstream (MMP) upgraded to Overweight from Equal Weight at BarclaysON Semiconductor (ONNN) upgraded to Outperform from Neutral at Credit SuissePan American Silver (PAAS) upgraded to Buy from Hold at Deutsche BankSouthern Copper (SCCO) upgraded to Outperform from Market Perform at FBR CapitalThompson Creek (TC) upgraded to Buy from Neutral at BofA/MerrillVeriFone (PAY) upgraded to Overweight from Neutral at JPMorganXPO Logistics (XPO) upgraded to Buy from Hold at KeyBancYahoo (YHOO) upgraded to Buy from Fair Value at CRT Capital

Downgrades

ASML (ASML) downgraded to Neutral from Outperform at Credit SuisseCameron (CAM) downgraded to Equal Weight from Overweight at Morgan StanleyCardtronics (CATM) downgraded to Neutral from Overweight at JPMorganCeladon Group (CGI) downgraded to Hold from Buy at StifelChannelAdvisor (ECOM) downgraded to Neutral from Buy at GoldmanDelek Logistics (DKL) downgraded to Equal Weight from Overweight at BarclaysDemandware (DWRE) downgraded to Neutral from Conviction Buy at GoldmanEnergy Transfer Partners (ETP) downgraded to Equal Weight from Overweight at BarclaysEverBank Financial (EVER) downgraded to Neutral from Buy at Sterne AgeeFamily Dollar (FDO) downgraded to Underweight from Equal Weight at BarclaysFreeport McMoRan (FCX) downgraded to Market Perform from Outperform at FBR CapitalGeneral Mills (GIS) downgraded to Underweight from Equal Weight at Morgan StanleyGenesis Energy (GEL) downgraded to Equal Weight from Overweight at BarclaysGentiva Health (GTIV) downgraded to Hold from Buy at Deutsche BankHeartland Payment (HPY) downgraded to Neutral from Overweight at JPMorganHi-Crush Partners (HCLP) downgraded to Equal Weight from Overweight at BarclaysKiOR (KIOR) downgraded to Market Perform from Outperform at CowenMicrosoft (MSFT) downgraded to Neutral from Buy at CitigroupPlexus (PLXS) downgraded to Neutral from Buy at GoldmanQualcomm (QCOM) downgraded to Market Perform from Outperform at Raymond JamesRudolph Technologies (RTEC) downgraded to Neutral from Outperform at Credit SuisseSirius XM (SIRI) downgraded to Equal Weight from Overweight at BarclaysSouthcross Energy (SXE) downgraded to Underweight from Equal Weight at BarclaysStealthGas (GASS) downgraded to Market Perform from Outperform at Wells FargoTE Connectivity (TEL) downgraded to Buy from Conviction Buy at GoldmanVeolia Environment (VE) downgraded to Neutral from Buy at CitigroupVolcano (VOLC) downgraded to Market Perform from Outperform at JMP SecuritiesWestern Union (WU) downgraded to Sell from Neutral at CitigroupYRC Worldwide (YRCW) downgraded to Hold from Buy at BB&TZELTIQ (ZLTQ) downgraded to Neutral from Buy at Goldman

Initiations

3D Systems (DDD) initiated with an Outperform at RBC CapitalAmerican Express (AXP) initiated with a Neutral at UBSBB&T (BBT) initiated with a Neutral at Janney CapitalCapital One (COF) initiated with a Buy at UBSCatchMark Timber (CTT) initiated with an Outperform at Raymond JamesComerica (CMA) initiated with a Neutral at Janney CapitalComstock Resources (CRK) initiated with an Outperform at Imperial CapitalDiscover (DFS) initiated with a Neutral at UBSDyax (DYAX) initiated with an Outperform at WedbushFifth Third Bancorp (FITB) initiated with a Buy at Janney CapitalKNOT Offshore Partners (KNOP) initiated with an Outperform at RBC CapitalKeyCorp (KEY) initiated with a Buy at Janney CapitalM&T Bank (MTB) initiated with a Neutral at Janney CapitalNeenah Paper (NP) initiated with a Buy at DA DavidsonPeople's United (PBCT) initiated with a Buy at Janney CapitalRed Hat (RHT) initiated with an Outperform at JMP SecuritiesRegions Financial (RF) initiated with a Buy at Janney CapitalStratasys (SSYS) initiated with an Outperform at RBC CapitalSynergy Resources (SYRG) initiated with a Hold at Stifel

But that was then. The most recent edition of World Energy Outlook, published this past November, was a lot more circumspect. Yes, shale oil, tar sands, and other unconventional fuels will add to global supplies in the years ahead, and, yes, technology will help prolong the life of petroleum. Nonetheless, it’s easy to forget that we are also witnessing the wholesale depletion of the world’s existing oil fields and so all these increases in shale output must be balanced against declines in conventional production. Under ideal circumstances -- high levels of investment, continuing technological progress, adequate demand and prices -- it might be possible to avert an imminent peak in worldwide production, but as the latest IEA report makes clear, there is no guarantee whatsoever that this will occur.

GREEN BOND PRINCIPLES CREATED TO HELP ISSUERS AND INVESTORS DEPLOY CAPITAL FOR GREEN PROJECTS
A consortium of investment banks today announced their support of the Green Bond Principles – Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase, BNP Paribas, Daiwa, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, Rabobank and SEB. These Principles were developed with guidance from issuers, investors and environmental groups and serve as voluntary guidelines on recommended process for the development and issuance of Green Bonds. They encourage transparency, disclosure and integrity in the development of the Green Bond market.
These Green Bond Principles suggest process for designating, disclosing, managing and reporting on the proceeds of a Green Bond. They are designed to provide issuers with guidance on the key components involved in launching a Green Bond, to aid investors by ensuring the availability of information necessary to evaluate the environmental impact of their Green Bond investments and to assist underwriters by moving the market towards standard disclosures which facilitate transactions.
These Principles build on first-to-market issuances by multilaterals and provide a platform for other future Green Bond issuers to direct funding to Green Projects. They are complemented by an appendix of established definitions of Green Project categories that were developed by multilaterals, non-profit and non-government organizations, and other relevant stakeholders. Read more about the Green Bond Principles here .
The four banks that served as a drafting committee for these Principles – Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and Investment Bank and JPMorgan Chase – will propose in 2014 a governance process that will allow for diverse stakeholder input into the Green Bond Principles. It is anticipated that an independent third party will be designated to serve as a secretariat whose administrative duties will include facilitating information exchange with issuers, investors, underwriters, and other stakeholders such as non-profit environmental organizations, non-government organizations, academics and other thought leaders.
COMMENTS FROM SUPPORTING BANKS: